The Gillard government has introduced its centrepiece Gonski education reforms to parliament with a warning that non-participating states will miss out on the cash, while a significant business group announced their backing for the reforms.

Struggling to win support from key states before its 30 June deadline, the government said legislation introduced on Tuesday night meant states and school systems that did not sign up would miss out on their share of an additional $14.3 billion offered over the next six years.

"The (bill) makes clear that non-participating school sectors will be putting at risk the extra resources on offer for their schools. They will receive funding on the same basis they did in 2013 and existing National Partnerships for schools will not be renewed once they expire," Gillard said in a statement. "This is a once in a generation chance to improve our schools."

The introduction of the bill came as the Australian Industry Group, representing mainly manufacturers, released a report recommending the "principles" of the reforms were "fundamentally sound" and that the government implement it.

In a speech to a Melbourne University, chief executive Innes Willox acknowledged the concerns of the higher education sector about the cuts to university funding that have been justified by the need to find money to pay for the schools reforms as well as "the concerns that the States have about the particular model that has been put forward by the Commonwealth Government"

But he said the reform's "principles are fundamentally sound. In order to facilitate a world-class education system we need to hasten implementation of a raft of reforms, including increasing resourcing."

He said the "needs based funding" proposed by the government - which offers a set amount for each student, topped up to recognise special circumstances like low socio-economic status, disability or remote location - was "an essential part of improving the system"

The Coalition opposes the changes on the grounds that the current funding system "is not broken" and has urged state Premiers not to sign the Gonski deal.

So far Labor has secured support from only NSW and the ACT.

Julia Gillard has accused Queensland premier Campbell Newman of bowing to pressure from the federal coalition because he has so far refused to sign the deal.

She wrote to Newman urging him to accept the extra commonwealth money, saying "there can be no excuse for your government's wilful misrepresentation of the scale of investment that is available, and surely there will be no forgiveness for you turning your back on Queensland's kids.".

"Queensland schools will gain $3.8 billion – around $2.2 million on average per school, over six years."

In Victoria, thirty-seven state school council presidents have written to the state education minister Martin Dixon, urging him to sign on, but the government has made no commitment.

In Tasmania, the education minister Nick McKim said the state was "on track" to sign onto the deal "within weeks".

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